ECGD is now prepared to provide support for UK exporters trading with the National Petroleum Company (NPC) of Iran for contracts of up to US$20mn without the need for NPC to enter into a structured finance arrangement.
The decision will be a major boost to UK companies selling capital goods or providing services to NPC (the state-owned petrochemicals company in Iran) where contract values are of modest amounts.
ECGD chief executive Vivian Brown says: “The current arrangements we have for business with NPC have worked extremely well. However, the security arrangements are more suited to higher value contracts. Now we will be able to provide our customers with a faster, simpler service appropriate to smaller contracts.”
ECGD’s normal risk assessment criteria for projects will continue to apply.